Siemens (SIEM IN) – Q3FY26 Result Update – Mixed quarter; watchful on private capex revival – Accumulate
Published on 06 Feb 2026
Siemens (SIEM) reported a mixed quarter with revenue up 14% YoY to Rs38.3bn, while EBITDA margin contracted 86bps YoY to 11.1%. Digital Industries (DI) has returned to normal operations and contributed meaningfully to order intake growth, though elevated material costs continue to pressure margins. Mobility (MO) remains SIEM’s key growth driver, albeit with margins impacted by forex losses, while Smart Infrastructure (SI) benefits from supportive macro tailwinds and one-off commodity gains during the quarter. Although the India-EU FTA and the US trade agreement are likely to open incremental opportunities for technology collaboration and exports, persistently weak domestic private capex remains a key overhang for medium-term growth. We revised our SY26-27E EPS estimates by -7.8%/-1.8% accounting for continued margin pressures in DI and MO. The stock is currently trading at 58.3x/47.5x on SY26/27E. We maintain our ‘Accumulate’ rating with a revised TP of Rs3,409 (vs. Rs3,470 earlier), valuing the stock at 51x Sep’27E (same as earlier).
